Dymon Asia Private Equity on Thursday announced that it is partnering with SGX mainboard-listed TEE International Limited to acquire Sembcorp Environment Pte. Ltd (SembEnviro) for S$20 million ($14.9 million).
The transaction marks the first deal by Dymon Asia PE’s second Southeast fund, which was recently closed with $450 million in committed capital.
SembEnviro, a unit of Sembcorp Industries, is a leading player in the medical and biohazardous waste management sector in Singapore, catering to both the private and public healthcare sectors.
Dymon Asia PE’s wholly-owned subsidiary Asia Enviro Services Ltd. and TEE Infrastructure have formed a 50:50 joint venture, TEE Medical Services Pte. Ltd., for the acquisition.
“This divestment is in line with Sembcorp’s new strategic direction announced early this year for more disciplined capital allocation, and to divest peripheral utilities assets to recycle capital and unlock value,” said Sembcorp group president and CEO Neil McGregor.
The divestment will result in an expected net gain of approximately S$15 million for Sembcorp for the financial year ending December 31, 2018, according to a Sembcorp statement. The sale is expected to be completed by mid-2018, subject to necessary approvals.
“Sembcorp’s medical and biohazardous waste division is a pioneer and market leader in the sector, with more than 25 years of operating and safety track record. We are excited to partner with TEE Infrastructure to continue maintaining the division’s quality standards and excellent track record to meet the growing needs and demands in the healthcare sector in Singapore,” said Dymon Asia PE managing director Gabriel Ho.
“This acquisition complements our existing environmental business as a niche extension of our waste management services, which is in line with our core tenet of capability-building,” said Edwin Neo, Head of TEE’s Infrastructure business.
According to a media release, TEE Infrastructure and Dymon Asia PE will also jointly explore strategic investments in the infrastructure space.
Early this month, Dymon Asia PE announced the final close of its second Southeast Asia fund at its hard cap of $450 million. The fund was backed by sovereign wealth funds, insurance companies and banks, family offices and professional asset managers, it said.
Dymon Asia PE is the private equity arm of Dymon Asia Capital, a Singapore-based fund manager which manages several alternative investment funds with aggregate assets under management of approximately US$5 billion (including committed capital and notional assets) as of March 31, 2018.